3 Places from Where General Electric Company (GE)’s Healthcare Can Look For Growth
General Electric Company (NYSE:GE)’s CEO, Jeff Immelt, has assigned John Flannery, with a specific focus to improve the organic growth of its healthcare business. Even though there were reports or speculations on the reasons for naming Flannery as the CEO of healthcare unit, his latest comment should put to rest all the speculations. He was considered a deal maker, and that gave all kind of speculations or reports about the real intentions of his appointing as the CEO of the unit. Therefore, he is now looking, at least, three places for growth.
Medical Imaging Remains Biggest Business
General Electric Company (NYSE:GE) believes that its healthcare unit’s biggest business is its medical imaging like the ultrasound probes and MRI scanners. However, it does think that the market is facing stiff competition from newer entrants from Asia like SAMSUNG ELECT LTD(F) (ADR) (OTCMKTS:SSNLF) and the old guards such as Siemens AG (ADR) (OTCMKTS:SIEGY) and Philips. Flannery was well aware of the cost-conscious healthcare systems and the associated pricing pressure with it. Still, he said that the unit was responding to the lower-cost products in the emerging markets and adapted itself to the local requirements.
As far the developed markets were concerned, the healthcare unit is focusing it on harnessing digital technology. That is the second place the company is looking for growth as it was hoping to boost data analytics to lift the value. This involved amalgamating the online networks with its software and hardware. General Electric Company (NYSE:GE) believes that it provides the long-term potential for pattern recognition, as well as, machine learning. That would ultimately help to diagnose more accurately.
The business conglomerate’s healthcare unit is also looking to achieve greater efficiency. For instance, it reached an agreement with Philadelphia-based Temple University Health System. The deal promises its equipment, as well as, services to generate $39 million saving during a seven-year period. If that is not achieved, then it would invite penal charges.
General Electric Company (NYSE:GE) expects synergies to increase as the unit was in the process of mass digitization and it remained as a foremost focus.
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